Internet Ad Revenues at Nearly $15 Billion in First-Half 2011, Up
23%, Second Quarter 2011 Breaks Record Again

NEW YORK--(BUSINESS WIRE)--Internet ad revenues rose 23.2 percent — to a record $14.9 billion — in
the first half of 2011, according to figures released today by the
Interactive Advertising Bureau (IAB)
and PricewaterhouseCoopers (PwC US). The rate of growth more than
doubled year-over-year, as last year’s first-half ad revenues of $12.1
billion had represented an 11.3 percent increase over 2009.

Internet ad revenues for the second quarter alone also reached new
heights, increasing 24.1 percent to $7.7 billion. That performance
compares to last year’s same-period revenues of $6.2 billion, up 13.9
percent from 2009.

Display-related advertising — which includes banner ads, rich media,
digital video and sponsorships — totaled more than $5.5 billion in the
first six months of 2011. Display increased 27.1 percent over the same
period in 2010, substantially exceeding the previous year’s growth rate
of 16 percent. Digital video once again commanded double-digit growth —
up 42.1 percent over a year ago, and moved close to the $1 billion mark
with $891 million in half year 2011 revenue.

Display accounted for 37 percent of all interactive spend in the first
half of 2011, with search remaining the leading online category at 49
percent of the total — nearly $7.3 billion. Search and Display each grew
about 27 percent year-over-year, with Search more than doubling its
previous year’s growth rate of 11.6 percent.

In other online ad formats, dollars spent on lead generation increased
25.4 percent over the same period in 2010, but classified ad dollars
were down 2 percent and email spend decreased 34.2 percent.

IAB and PwC US looked at revenue models supporting online ads. Ads using
performance-based models increased faster than ads using
impression-based models, rising to $9.6 billion. Impression-based ad
spend did grow by 10.8 percent, though that pricing model accounted for
only 31 percent of total ads, down from 35 percent year-over-year.

“The remarkably resilient performance of interactive advertising so far
in 2011 demonstrates that more marketers are placing big bets on digital
to tell their brand stories," said Randall Rothenberg, President and
CEO, IAB. “This welcome news, in light of the weakness in a large part
of the rest of the U.S. economy, confirms that the innovations happening
in interactive marketing deliver great value to the industry and to the
consumer.”

“Strong online advertising growth has continued into the first half of
2011,” said David Silverman, a partner at PricewaterhouseCoopers LLP.
“Fueling this growth is the ability of advertisers to correlate
performance and results with the dollars they are investing.”

“These figures build upon the positive news we saw in the 2010 year-end
revenue report,” said Sherrill Mane, Senior Vice President, Industry
Services, IAB. “It’s a clear signal that all of us in the interactive
advertising industry are delivering meaningful results to marketers --
and that they are confident in investing in interactive.”

Annual Figures

The following chart highlights half-year Internet ad revenue since the
IAB began measurements in 1996; dollar figures are rounded.

Year

% Growth

HY 11

$14,941

23%

HY 10

$12,127

11%

HY 09

$10,900

-5%

HY 08

$11,510

15%

HY 07

$9,993

26%

HY 06

$7,909

37%

HY 05

$5,787

26%

HY 04

$4,599

40%

HY 03

$3,292

11%

HY 02

$2,978

-20%

HY 01*

$3,720

-7%

HY 00*

$4,013

147%

HY 99

$1,627

110%

HY 98

$774

125%

HY 97

$344

320%

HY 96

$82

---------

Total

$94,596

Ad Category Breakouts(in
millions)

HY 2011

HY 2010

Search

49% ($7,286)

47% ($5,747)

Display Related:

37% ($5,535)

36% ($4,356)

-Banner Ads

23% ($3,414)

23% ($2,744)

-Digital Video

6% ($891)

5% ($627)

-Rich Media

5% ($763)

6% ($743)

-Sponsorship

3% ($467)

2% ($242)

Classifieds

8% ($1,237)

10% ($1,262)

Referrals/Lead Generation

5% ($805)

5% ($642)

E-mail

1% ($79)

1% ($120)

Revenue Pricing Models (in millions)

HY 2011

HY 2010

Performance-Based

64% ($9,588)

61% ($7,410)

Impression-Based

31% ($4,668)

35% ($4,213)

Hybrid

5% ($686)

4% ($505)

The IAB sponsors the IAB Internet Advertising Revenue Report, which is
conducted independently by the Internet Media Group of PwC US. The
results are considered the most accurate measurement of interactive
advertising revenues because the data is compiled directly from
information supplied by companies selling advertising on the Internet.
The survey includes data concerning online advertising revenues from Web
sites, commercial online services, free e-mail providers, and all other
companies selling online advertising.

The full report is issued twice yearly for full and half-year data, and
top-line quarterly estimates are issued for the first and third
quarters. PwC does not audit the information and provides no opinion or
other form of assurance with respect to the information. Past reports
are available at www.iab.net/AdRevenueReport.

About the IAB

The Interactive Advertising Bureau (IAB) is comprised of more than 500
leading media and technology companies who are responsible for selling
86% of online advertising in the United States. On behalf of its
members, the IAB is dedicated to the growth of the interactive
advertising marketplace, of interactive’s share of total marketing
spend, and of its members’ share of total marketing spend. The IAB
educates marketers, agencies, media companies and the wider business
community about the value of interactive advertising. Working with its
member companies, the IAB evaluates and recommends standards and
practices and fields critical research on interactive advertising.
Founded in 1996, the IAB is headquartered in New York City with a Public
Policy office in Washington, D.C. For more information, please visit www.iab.net.

About the PwC Network

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to enhance value for their clients. More than 161,000 people in 154
countries in firms across the PwC network share their thinking,
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for more information.